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Elderly Chinese retail investors shift savings to tech stocks on state support
Technology stocks, including chipmakers and AI developers, are attracting elderly retail investors in China who are betting on the nation's technological ascendancy, spurred by government backing and dissatisfaction with blue-chip returns.
Fang Yan’an, a veteran investor in his late 70s, has adopted a strategy of chasing rallies in select technology companies, a tactic he describes as "the best bit of a beer." He is among a growing cohort of older Chinese retail investors pivoting from traditional blue-chip stocks to technology shares.
This shift is fueled by substantial state support for technological development, which Fang notes has ramped up in recent years. Many other nations have similarly increased backing for tech, reinforcing his faith in the sector, particularly artificial intelligence.
"Since technology is now crucial for global competition, I tend to believe in the AI industry, and I’m prepared to hold the shares through a long-haul journey," Fang said. He added that higher earnings could justify the elevated valuations of tech stocks as more commercial products emerge from research.
Frustration with the slow gains of blue-chip stocks has also driven elderly investors toward more volatile but potentially higher-return tech investments. The trend reflects a broader belief in China's technology ascendancy and its importance in global competition.